Opportunities in Exporting                            8/96

Exporting can mean big profits for a small business. If you are
not exploring export markets, you may be missing out on a world
of opportunity.


Small Business and Exporting

World trade is increasingly important to the strength of our
economy and to the growth of U.S. companies. Exporting creates
jobs and provides small firms with growth, new markets and ad-
ditional profits. Every billion earned in U.S. export dollars
generates about 25,000 jobs.

There has never been a better time for American businesses to
begin exporting. As the world economy becomes more interdependent,
the opportunities for small businesses become more attractive.

Exporting is booming in the United States, and small businesses
are beginning to realize that the world is their market. A busi-
ness does not have to be big to sell in the global marketplace.

Experience shows that small businesses can and do export success-
fully. Finding your niche in the world market is similar to find-
ing it in the U.S. market. Many of the same qualities that make
small business owners successful in the United States apply to
success in global markets.


The Advantages of Exporting

Small business exporters can play a significant role in improving
the U.S. balance of trade while protecting their competitiveness
and improving their profits. Entering the overseas marketplace
offers many benefits for small businesses, including -

*  increased growth,
*  increased profits,
*  additional markets,
*  extended product/service life cycles,
*  increased numbers of customers,
*  tax advantages,
*  added product/service lines,
*  improved competitiveness, and
*  favorable publicity and recognition.


Exploring New Markets

Thousands of small firms already compete in the global market.
They account for 97 percent of companies involved in direct mer-
chandise exporting, yet generate only about 30 percent of the
dollar value of the nation's export sales. Small firms, then,
represent the largest pool for potential growth in export sales.

Entering the overseas market does not have to be difficult. The
same strategies applied in the U.S. market can be used to develop
export markets. Selling abroad demands hard work, perseverance
and a commitment of resources.

It requires planning, market research and attention to detail.
It may also involve changes, like new packaging and metric con-
version.

The mystery can be taken out of exporting by considering some of
the fundamental elements of the export process:

*  Analyze the capabilities of your small business.
*  Know the export potential of your product/service.
*  Identify foreign markets that are right for you.
*  Study market-entry strategies and export procedures.
*  Learn how to process exports.


Where to Find Assistance

Once you have decided to expand into the international market-
place, you need to know how to get started. There are many
resources that provide assistance for small and medium-sized
businesses seeking to export.

Federal Programs: Small business exporters may benefit from a
variety of services provided by the SBA and the U.S. Department
of Commerce. Types of services include -

*  export counseling,
*  workshops and training conferences,
*  publications, and
*  financial assistance.


SBA Assistance

Export Working Capital Program: The EWCP provides short-term,
transaction-specific financing. The SBA guarantees up to
$750,000 or 90 percent of the loan amount, whichever is less.
Exporters may use this program for pre-export financing of labor
and materials, financing receivables generated from these sales,
and/or standby letters of credit used as performance bonds or
payment guarantees to foreign buyers.

The International Trade Loan Program: The ITL helps small busi-
nesses that are engaged or are preparing to engage in inter-
national trade, as well as small businesses adversely affected by
competition from imports. The SBA can guarantee up to $1.25 mil-
lion, less the amount of SBA's guaranteed portion of other loans
outstanding to the borrower under SBA's regular lending program.

U.S. Export Assistance Centers: USEACs offer a full range of
federal export programs and services under one roof. Clients are
assisted by professionals from the SBA, the Department of Com-
merce, the Export-Import Bank of the United States, and other
public and private organizations. 

Service Corps of Retired Executives: SCORE, with 400 locations
and 13,000 members throughout the country, offers individual
counseling by retired executives, providing you with access to
years of international business experience.

Small Business Development Centers: SBDCs, operating in coopera-
tion with local colleges and universities, offer in-depth busi-
ness counseling and training.

Export Legal Assistance Network: Through ELAN, you can receive a
free, one-time consultation from an attorney experienced in
international trade law.

Export Access: This international market-research tool delivers
free market-data reports to your computer screen. Formerly known
as SBAtlas, Export Access provides both product and country
reports: The product report ranks the top 35 import and export
markets for a particular product; the country report identifies
the top 20 import and export products by country for the last
five years. An on-screen graph allows for easy identification of
trends. Export Access is easily reached via the Internet; it is
on the Office of International Trade Home Page, which is found
through the SBA Home Page. Export Access is also available at
local SBA offices nationwide.


Other Available Assistance

The U.S. Department of Commerce: This agency offers a wide range
of information on export potential, international markets, trade
leads and contacts. It also conducts trade missions and catalog
exhibitions, and assists firms participating abroad in trade
shows. For more information about Commerce Department programs,
consult your telephone directory under "U.S. Government" or call
(800)-USA-TRADE.

State and Local Agencies: Your state and/or local government may
also offer export assistance.

Chambers of Commerce: Some chambers actively promote exports and
provide training programs, counseling, referrals, trade missions
and publications.

International Trade Associations: Many of these associations and
other private organizations offer a wide range of services. Most
conduct regular meetings with qualified speakers and provide net-
working opportunities with others involved in international trade.

Export Management and Export Trading Companies: These companies
serve as export sales intermediaries and representatives for
manufacturers. Services include locating foreign buyers, pro-
moting products, making export sales, providing documentation
and shipping products overseas.

Consulting Firms: Trade consultants can provide information on
domestic and foreign trade regulations and overseas markets, and
can assess overseas commercial and political risk. They often
specialize in product lines and/or geographical areas.

Some small law firms, accounting firms or specialized marketing
firms also provide international-trade consulting services.


For More Information

Information is power. Make it your business to know what is
available, where to get it and, most importantly, how to use it.

Sources of information include:

U.S. Small Business Administration
*  SBA District Offices
*  Small Business Development Centers (SBDCs)
*  Service Corps of Retired Executives (SCORE)
*  SBA OnLine (electronic bulletin board)
*  Business Information Centers (BICs)

The SBA has offices located throughout the United States. For the
one nearest you, look under "U.S. Government" in your telephone
directory, or call the SBA Answer Desk at (800) 8-ASK-SBA. To send
a fax to the SBA, dial (202) 205-7064. For the hearing impaired,
the TDD number is (704) 344-6640.

To access the agency's electronic public information services,
you may call the following:

     SBA OnLine: electronic bulletin board - modem and computer
                 required
          (800) 697-4636 (limited access)
          (900) 463-4636 (full access)
          (202) 401-9600 (D.C. metro area)
     Internet: using uniform resource locators (URLs)
          SBA Home Page: http://www.sba.gov
          SBA gopher: gopher://gopher.sba.gov
          File transfer protocol: ftp://ftp.sba.gov
          Telnet: telnet://sbaonline.sba.gov
          U.S. Business Advisor: http://www.business.gov

You also may request a free copy of The Resource Directory for
Small Business Management, a listing of for-sale publications and
videotapes, from your local SBA office or the SBA Answer Desk.


Other Sources

*  State economic development agencies
*  Chambers of commerce
*  Local colleges and universities
*  Libraries
*  Manufacturers and suppliers of small business products and
   services
*  Small business or industry trade associations

All of the SBA's programs and services are provided to the public
on a nondiscriminatory basis.

FS0061 (8/96)

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